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Financial Guarantees in Force (Notes)
 12 Months Ended
Dec. 31, 2020
Guarantees [Abstract]  
Financial Guarantees in Force
7. FINANCIAL GUARANTEES IN FORCE
Financial guarantees outstanding includes the exposures of policies that insure variable interest entities (“VIEs”) consolidated in accordance with ASC Topic 810, Consolidation. Financial guarantees outstanding includes the exposure of policies that insure capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bonds. Financial guarantees outstanding exclude the exposures of policies that insure bonds which have been called, pre-refunded or refunded and excludes exposure of the policy that insures the notes issued by Ambac LSNI as defined in Note 1. Background and Business Description. The gross par amount of financial guarantees outstanding was $39,070 and $43,908 at December 31, 2020 and 2019, respectively. The par amount of financial guarantees outstanding, net of reinsurance, was $33,888 and $38,018 at December 31, 2020 and 2019, respectively. As of December 31, 2020, the aggregate amount of insured par ceded by AAC to reinsurers under reinsurance agreements was $5,182 with the largest reinsurer accounting for $2,398 or 6.1% of gross par outstanding at December 31, 2020.
As of December 31, 2020 and 2019, the guarantee portfolio was diversified by type of guaranteed bond as shown in the following table:
December 31,
Net Par Outstanding December 31,20202019
Public Finance:
Housing revenue$5,855 $5,991 
Lease and tax-backed revenue4,179 5,102 
General obligation2,345 3,011 
Transportation revenue771 855 
Higher education747 885 
Utility revenue675 768 
Other925 1,041 
Total Public Finance15,497 17,653 
Structured Finance:
Mortgage-backed and home equity3,635 4,423 
Investor-owned utilities1,617 1,675 
Student loan626 769 
Structured Insurance311 395 
Asset-backed and other148 246 
Total Structured Finance6,337 7,508 
International Finance:
Sovereign/sub-sovereign5,270 5,264 
Investor-owned and public utilities3,899 4,436 
Transportation1,511 1,532 
Asset-backed and other1,374 1,625 
Total International Finance12,054 12,857 
Total$33,888 $38,018 
(1)Includes $5,575 and $5,654 of Military Housing net par at December 31, 2020 and 2019, respectively.
As of December 31, 2020 and 2019, the International Finance guaranteed portfolio by location of risk was as outlined in the table below:
Net Par Outstanding December 31,20202019
United Kingdom$9,711 $10,593 
Italy803 767 
Austria707 674 
Australia420 382 
France277 303 
Other international (1)
136 138 
Total International Finance$12,054 $12,857 
(1)    Other international may include components of U.S. exposure.
Gross financial guarantees in force (principal and interest) were $61,895 and $69,826 at December 31, 2020 and 2019, respectively. Net financial guarantees in force (after giving effect to reinsurance) were $51,603 and $58,245 as of December 31, 2020 and 2019, respectively.
In the United States, Colorado, California and New York were the states with the highest aggregate net par amounts in force, accounting for 7.0%, 6.2% and 5.4% of the total at December 31, 2020, respectively. No other state accounted for more than 5%. The highest single insured risk represented 2.9% of the aggregate net par amount guaranteed.